The 2019 budget has been released and, after the recent federal elections, we know for sure there are some changes are coming to the construction industry in 2019/20! Here's what you need to know.
Budget Highlights for 2019
The Instant Asset Write Off
Image from Interiors Addict
The best and most important change for small businesses and sole traders - the Instant Asset Write Off has just been increased from $25,000 to $30,000!
This means you can invest in your business and claim for up-front asset purchases like new tools, equipment and machinery while receiving a tax benefit - all in the same year.
It will be available to all companies with a turn over of up to $50 million - perfect for small to medium construction companies.
The Apprentice Skills Package
Another major change for tradies - $525 million has been committed to create 80,000 apprenticeship over the next five years with each apprentice receiving $2,000 payment under the scheme.
To qualify, you just need to complete your apprenticeship. If you're an employer the existing $4,000 incentive has been doubled to $8,000.
Tax Cuts for Low to Middle Income Earners
Anyone earning up to $126,000 a year will get a tax cut. Up to $1,080 for single income families and $2,160 for dual income families.
Those are the major changes ahead that combined with the new pledge for construction work in QLD and Victoria could really amp up your small business. Got more questions? We found the ATO provides a solid explanation of the changes coming on their site:
https://www.ato.gov.au/Individuals/Income-and-deductions/Deductions-you-can-claim/